The Strategically Relevant Factors Outside a Company's Industry Boundaries-Economic Conditions

question 129

Multiple Choice

The strategically relevant factors outside a company's industry boundaries-economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions-are known as

• A)the industry and the competitive arena in which the company operates.
• B)general economic conditions plus the factors driving change in the markets where a company operates.
• C)a company's macro-environment.
• D)the competitive market environment that exists between a company and its competitors.
• E)the dominant economic features of a company's industry.

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Definitions:

Journal Entry

A record in accounting that shows a business transaction and its effect on the financial statements, consisting of debit and credit entries.

Predetermined Overhead Rate

A method employed to distribute manufacturing overhead costs to specific production units, utilizing projected expenses and levels of activity.

Equipment Depreciation

The method of allocating the cost of physical assets over their useful life, reflecting the loss of value over time.

Factory Rent

The cost associated with leasing a facility used for manufacturing or production purposes.